The Reserve Bank of Australia have decided once again to keep interest rates on hold down under at 2%.
With recent suggestions that the global slowdown is not as bad as previously thought this has allowed the RBA to leave things as the status quo.
Growth in China is still a concern for the Australian economy and clearly there has been a big fall in demand for natural resources but this has not caused the Australian Dollar to weaken in recent times which normally is the case.
Inflation in Australia still remains low and is likely to stay low for quite some time, which is the case worldwide at the moment and to me at some point the RBA will have to act by cutting interest rates in order to combat falling inflation.
However, whilst the political scene in the UK remains uncertain with the Brexit talks continuing this is causing Sterling to generally remain weak across the board against all major currencies.
Australian GDP data is due out tomorrow and this could be the pivotal point of the week for Sterling vs Australian Dollar exchange rates. The expectation is for growth of 2.6% so anything lower could see Sterling improve vs the Australian Dollar.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]